Values and Returns
One of the most persistent myths about faith-based investing is that aligning your investments with biblical principles means settling for lower returns. This misconception assumes that values and performance exist in tension, as if investors must choose between doing good and doing well.
Faith-based investors are discovering that strong moral convictions don’t have to come at the expense of financial growth. In fact, companies that operate with integrity, transparency, and respect for people and the planet often outperform over the long term. When managed wisely, faith-aligned portfolios can deliver competitive—and sometimes superior—financial results.
Why Strong Values Support Strong Returns
There’s growing evidence that ethical business practices and responsible management are not only good for society—they’re also good for shareholders.
Companies that treat employees fairly, and build trust with customers and communities tend to enjoy greater brand loyalty, higher employee engagement, and stronger operational efficiency. Those that manage environmental and social risks thoughtfully are better positioned to adapt to market shifts, regulatory changes, and supply chain disruptions.
In short, responsible business isn’t just a moral win—it’s a strategic one.
Proverbs 11:3 reminds us, "The integrity of the upright guides them, but the crookedness of the treacherous destroys them." In business, as in life, integrity often leads to stability, while unethical behavior can result in costly reputational damage or legal troubles.
Academic and industry research backs this up:
- Faith-based funds that screen for ethical business practices have kept pace with, and in some cases outperformed, traditional market benchmarks.
- Long-term investment strategies rooted in stewardship principles tend to focus on sustainable growth over short-term gains—an approach that often results in healthier portfolios.
Faith-Based Investing in Practice
Today, investors no longer need to compromise between financial goals and biblical values. A growing number of financial products and services are tailored to meet both needs.
Options include:
- Faith-aligned mutual funds and ETFs that screen investments based on biblical criteria.
- Separately managed accounts (SMAs) that allow for personalized screening and portfolio customization.
- Impact-focused funds that invest in businesses driving positive social or environmental outcomes.
These tools enable investors to build well-diversified portfolios that align with their convictions without sacrificing professional management, competitive fees, or access to global markets.
Colossians 3:23 exhorts believers to “work heartily, as for the Lord and not for men.” Faith-based investing reflects this same spirit of intentionality—pursuing excellence in financial decisions as an act of worship and service.
The Growing Demand for Values-Based Investing
The investment world is catching on. Demand for values-based investing has grown rapidly over the last decade, driven by:
- Increased awareness of social and environmental issues
- A new generation of investors seeking purpose alongside profit
- A shift in corporate behavior responding to stakeholder expectations
Faith-based investing is part of this broader movement—but with a distinct foundation rooted in Scripture. It calls investors to think differently: not just about what they own, but how their investments reflect love for God and neighbor.
As this space matures, more asset managers are offering faith-based solutions, and more advisors are equipped to help clients align their financial strategies with their spiritual convictions.
Stewardship and Long-Term Thinking
At the heart of faith-based investing is the biblical principle of stewardship. We are called to manage the resources God has entrusted to us with wisdom, integrity, and foresight.
Matthew 25:14–30, the Parable of the Talents, illustrates the importance of using our gifts and assets for purposeful growth. The faithful stewards in the story weren’t praised simply for preserving their resources—they were rewarded for multiplying them in ways that honored their master.
In the same way, faith-based investors are not called to be passive. They’re called to be wise and active stewards—seeking both impact and return.
This long-term mindset also aligns with the business practices of many faith-aligned companies. Rather than chasing short-term profits, these firms prioritize sustainability, relationships, and legacy—all of which contribute to enduring value creation.
Resilience in Uncertain Times
Periods of economic volatility reveal the strength—or weakness—of an investment strategy. Companies with ethical foundations and strong stakeholder relationships often weather storms more effectively than those that neglect their responsibilities.
Faith-based portfolios, which prioritize companies with sound governance and responsible management, are generally less exposed to headline risk or the fallout of unethical behavior.
Consider recent examples of corporate failures rooted in moral compromise: environmental disasters, labor violations, financial fraud. In many of these cases, values-based investors had already distanced themselves from these companies—or avoided them entirely—because of their misalignment with biblical principles.
Psalm 112:5 says, “Good will come to those who are generous and lend freely, who conduct their affairs with justice.” This is not just a promise—it’s a pattern. Businesses that operate justly tend to build goodwill, brand trust, and sustainable value.
Conclusion: No Trade-Off Required
Faith-based investing isn’t about choosing between righteousness and returns—it’s about integrating them. Investors who honor God in how they invest can also experience strong financial outcomes, because biblical principles often align with wise, future-oriented business practices.
As the financial industry continues to evolve, faith-based investors are well-positioned to lead—not just in ethics, but in performance. The call is clear: pursue excellence, seek impact, and trust that honoring God with your resources leads to lasting fruit. Proverbs 3:9–10 affirms this truth: “Honor the Lord with your wealth and with the firstfruits of all your produce; then your barns will be filled with plenty, and your vats will be bursting with wine.”
When values guide vision, the results can be both meaningful and abundant.
As a christian financial advisor, I help our clients incorporate these elements into their financial journey. This approach enables faith-driven investors to serve a greater purpose, advancing the Kingdom of God and benefiting future generations. Our clients, who are usually high-net-worth individuals or families, have access to high quality values-based investment options. After analyzing both options, we found that faith-based investors can perform just as well as traditional investors, but they also get the added benefit of making a positive difference in the world.
If you’re interested in learning more, let’s chat about how these principles can apply to your portfolio.